By Cristal Cody
Tupelo, Miss., Nov. 20 – CyrusOne LP and CyrusOne Finance Corp. priced $1.2 billion of split-rated senior notes (Ba1/BBB-/BBB-) in two tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes are guaranteed by CyrusOne Inc.
The companies sold $600 million of 2.9% five-year notes at 99.859 to yield 2.931%. The notes priced with a spread of 135 basis points over Treasuries.
Initial price talk on the five-year tranche was in the Treasuries plus 160 bps area.
A $600 million tranche of 3.45% 10-year notes priced at 99.709 to yield 3.485%, or a Treasuries plus 175 bps spread.
The 10-year notes were initially talked to price with a spread in the 200 bps over Treasuries area.
Bookrunners were Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BMO Capital Markets Corp., Capital One Securities, Inc., Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, Stifel, Nicolaus & Co., Inc., SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC.
Proceeds will be used for a consent solicitation and cash tender offer to purchase any and all of the company’s $700 million of 5% senior notes due 2024 and any and all of its $500 million of 5.375% senior notes due 2027 and for general corporate purposes.
CyrusOne is a Dallas-based real estate investment trust specializing in data center properties.
| Issuers: | CyrusOne LP and CyrusOne Finance Corp.
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| Guarantor: | CyrusOne Inc.
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| Amount: | $1.2 billion
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| Description: | Senior notes
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| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BMO Capital Markets Corp., Capital One Securities, Inc., Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, Stifel, Nicolaus & Co., Inc., SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC
|
| Trade date: | Nov. 20
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| Settlement date: | Dec. 5
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| Ratings: | Moody’s: Ba1
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Marketing: | Fixed income investor calls
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| Five-year notes
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| Amount: | $600 million
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| Maturity: | Nov. 15, 2024
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| Coupon: | 2.9%
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| Price: | 99.859
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| Yield: | 2.931%
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| Spread: | Treasuries plus 135 bps
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| Call features: | Make-whole call before Oct. 15, 2024 at Treasuries plus 25 bps; thereafter at par
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| Price guidance: | Treasuries plus 160 bps area
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| 10-year notes
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| Amount: | $600 million
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| Maturity: | Nov. 15, 2029
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| Coupon: | 3.45%
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| Price: | 99.709
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| Yield: | 3.485%
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| Spread: | Treasuries plus 175 bps
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| Call features: | Make-whole call before Aug. 15, 2029 at Treasuries plus 30 bps; thereafter at par
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| Price guidance: | Treasuries plus 200 bps area
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